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© 2007-2008 Richard E Murphy
Rock of AgesMarketing Plan
CJ Jaynes, Rich Murphy, and Sandi Nichols
August 18, 2007
© 2007-2008 Richard E Murphy
Table of Contents
Executive SummaryCurrent Situation / Trends
– Products & Services– Competition– Market Channels
Past PerformanceKey IssuesObjectivesMarketing Strategy
– Balanced Scorecard / Marketing Plan Mind MapAction PlansFinancials – Projected Profit/Loss StatementControlsContingency Plans
© 2007-2008 Richard E Murphy
Executive Summary
Issues: Financial problems from 2005 & 2006 resulted in a limited marketing budget of $650K and elimination of all new product activity.Objectives: Develop an effective “go-to-market” strategy for the retail division that will aid in the recovery, and provide new market opportunities.Strategy:
– Improve retail division revenues by capturing greater share of market for present line of products.
– Inaugurate 2 new lines of business (pet memorials & columbaria).Actions:
– Develop new Web site for retail division. – Aggressively pursue mausoleums, civic projects and plaques for buildings. – Award advertising dollars based on a retail store’s market potential vs revenues.– Promote the wider use of columbaria. – Develop market for memorial stones and plaques in pet cemeteries.– Design dashboards and scorecards to track marketing & sales achievements.
Expected Outcomes:– Implementing the Actions outlined above is expected to result in capturing from 1% - 12%
of market share for new lines of business, progressively during the coming 5 years, and to increase sales of present products by an average of nearly 6% annually.
© 2007-2008 Richard E Murphy
Current Situation & Trends
Tribute Direct– Free Shipping
Nationwide– $850 to $2640– Special internet
discount rates– Around the clock
hospice trained counselors; live chat available
– Will assist in planning the funeral; research for cemeteries
– User friendly website
Upright Monuments & Memorials - Overview
West Memorials– Free shipping– Customized– $820 - $1470 for
cast bronze on granite base
– No price list for uprights
– Also advertise mausoleum & columbarium
– User friendly website
Eagle Memorials– Low shipping
costs– Made to order;
delivers in 2 weeks
– Choice of granite color
– Also do Pet Headstones, enduring stone signs for parks, golf courses.
Industry Average for Upright Monuments is $800; ROA average is $2700.
© 2007-2008 Richard E Murphy
Where Did You Go to Purchase the Memorial?
5%
2%
20%
22%
50%
0 10 20 30 40 50 60
Don't Know
Other
Cemetery
Funeral Home
Monument Dealer
Percent
Upright Monuments & Memorials - Consumer Trends
Current Situation & Trends (cont.)
© 2007-2008 Richard E Murphy
Cemetery Consolidators10-15% -SCI, Alderwoods, Stewart, etc.
-Catholic Cemeteries40-50%Controlled by individual Archdioceses
-Municipally Owned25-30%Supported Primarily by towns and cities
-Family Owned, other Churches, etc.10-15%
20-30 National Historic Landmark Cemeteries
Cemetery Breakdown
Current Situation & Trends (cont.)
© 2007-2008 Richard E Murphy
Current Situation & Trends (cont.)
Fortress Mausoleum– Manufacture, deliver, and
install anywhere in the world
– No prices listed, but “less expensive than in-ground burials”
– Available 24 hours a day, 7 days a week
Mausoleums - Overview
Granite City Monuments– Will design for customer if
the standard product is not what is desired
– $5350 for basic single box; double costs $11,100.
– Product line for up to 6-8 person mausoleum
– Ship in 10 days
For their civic duty Fortress helped restore a Katrina destroyedcemetery
© 2007-2008 Richard E Murphy
Current Situation & Trends (cont.)
Holian Granite & Bronze in Kentucky.– Completed projects include Veterans Memorials,
Firefighters, and Parks. Upcoming project – Fighting Terrorism Memorial.
Cold Spring Granite in Minnesota– Projects include Korean War Memorial in DC and
Philadelphia, F.D.R Memorial, Mount Rushmore Visitors Center entrance, Peace Officer memorials.
Several of the projects are east coast based and taking away from ROA customer base.
Civic Projects – Competition
© 2007-2008 Richard E Murphy
Current Situation & Trends (cont.)
Competition: T&S Pet Memorials, Pet Praise Memorials, and Holian Granite & Bronze (as a subset of regular memorials)Price Ranges:– Head Stones: $75 - $400– Rock or Bronze Urns: $75 - $150– Garden Memorials: $195 - $495
Business is growing as more pet owners desire to memorialize their pets.
Pet Markets & Headstones - Overview
© 2007-2008 Richard E Murphy
Current Situation & Trends (cont.)
New trend for memorializing family members who desire to be cremated288 memorials fit on a Columbarium the size of a grave site.Modular & easy to transportTotem design allows for an entire family in a very small footprintOther dealers producing lightweight and non-rock type columbarium.
Columbarium - Overview
© 2007-2008 Richard E Murphy
The Competition
Memorials Segment Composes 38.8% of total sales ($197.377 million, and 55.6% of Total Profits ($54.337 million in 2004)Principal customers are cemeteries and memorial parksBronze Division is world’s leading supplier of cast metal memorial and architectural products ROA Purchases from Matthews: ~$250,000 annually
.13% of Matthews Bronze Sales
The largest provider of granite and bronze memorial products in the United States1
Estimated sales: $62.5 million2
Owns and operates 30 quarries and 5 manufacturing facilities in North America, including a bronze foundryROA purchases from Cold Spring: ~$1.25 million annually
Approximately 2% of their total sales
Cold Spring Granite CompanyMatthews Bronze
Current
© 2007-2008 Richard E Murphy
The Competition
Pet Markers & HeadstonesMilitaryFocused on Terrorism MemorialsLarge selection of Pet Memorials and growing
Mausoleums
Western US Market
Civic Projects & Building Plaques
Network of field sales reps focus on cemetery owners and monument retailers throughout the United States.
Growth continues
Cold Spring Granite
Holian Granite & Bronze
Anticipated New
ColumbariumFast growing business
Columbarium.net
© 2007-2008 Richard E Murphy
Market Channels
22,000+ Funeral Homes in the US300 Casket Sellers80% of industry consists of independently-owned businessesLargest funeral home companies are SCI (1,200 funeral homes), Alderwoods Group (700), and Stewart Enterprises (240)1,155 Crematories
Estimated 3,000 retailers selling upright granite monuments“On-line direct to consumers” is a thriving initiative.Reduced prices and free delivery offered as incentives to lure customers.
Funeral Homes -Crematories Consumer Direct
Current
© 2007-2008 Richard E Murphy
Market Channels
Direct to Customer via Internet
Retail Distributors
Conventions/Trade Shows
Print Media
Animal Rescue Associations
DoD Contracts
Direct to Military Retirees & Families
Local Government Contracts for Mausoleums, Buildings, Civic Projects
Army, Navy, & Air Force Times publications
Pet Memorials Military - Government
Anticipated New
© 2007-2008 Richard E Murphy
Past Performance
Revenues in retail operations– For 2006, retail revenues were down 16% from the prior year.– On a same-store basis, revenues were down 6%, or $2 million.– Gross profit dollars for the retail operations in 2006 were down 15% from the 2005
level.– Gross profit as a percentage of revenue was 52.6%, up 0.5% from 2005. – SG&A expenses in retail in 2006 were down 32% from the prior year, excluding
restructuring costs of $1,685,000. Significant changes were made in the retail segment early in the 2d quarter of 2006:
– Because of continuing sales declines and margin erosion, management concluded it was unlikely that there would be significant growth in this division in the near term.
– Management further concluded that the cost of the infrastructure in the retail division was not sustainable at current revenue and profit levels.
– Accordingly, four senior positions were eliminated, a more streamlined management structure was put in place and a "back to basics" philosophy was adopted by the new retail division leadership.
– Annual savings from the position eliminations are expected to be approximately $1.2 million.
– Improvement in revenue and margin, and additional cost reductions are also expected, but can not be quantified.
Retail Segment Analysis
© 2007-2008 Richard E Murphy
Key Issues
The greatest opportunities are for large civic projects and mausoleums. The wholesale margin and revenue for these projects is 100:1 better than for retail business. ROA will increase its active involvement in civic events and fundraisers toward garnering contracts for local memorials and building plaques.Mausoleums are a potential opportunity with Stewart enterprises who own over 800 cemeteries.The pet memorial market is expanding and offers immense opportunity for a company such as ROA that provides products of the highest quality. Chinese suppliers pose a threat due to cheap labor. China purchases proprietary color granite from ROA, however finished products are sold at prices ROA cannot match. ROA can compete with this threat based on its reputation for quality, its unsurpassed warranty, and superb customer service. Another threat is Crematoriums, since an increasing number of persons are scattering the ashes of their loved ones, as opposed to purchasing a perpetual memorial. ROA can meet this challenge by developing affiliations with crematoriums toward encouraging the use of memorial plaques, urns and columbarium.ROA is weak in the use of technology, both to promote its products, as well as to track & analyze the metrics that can provide management with the information it needs to determine the optimal marketing and sales tactics. Separating the Retail Division’s Web site from those of the other ROA divisions, coupled with implementation of dashboard reports (as demonstrated in the “Controls” segment of this presentation) can overcome the current technical weaknesses.
Opportunities & threats, strengths & weaknesses in the upcoming year.
© 2007-2008 Richard E Murphy
Assumptions: 1. Based on Retail Segment Analysis, contained in 2006 10k filings, as well as on information obtained during
discussions with ROA marketing managers, it is assumed that total Retail revenues for 2008 may exceed those of 2006 by $2M+, without adding new lines of business. Thereafter, revenues will increase, as depicted in the subsequent Revenue Forecast slides.
2. It is anticipated that the Pet Memorial and Columbarium lines of business will further enhance retail revenues by 8.86% during FY 2008, and approx.10% each year thereafter, for 5 years (based on Bass Diffusion Curve Analysis for predicting sales for new products), as depicted in the marketing forecast slides which follow.
3. In order to capture market shares for Pet Memorials and Columbaria, as calculated in the Revenue Forecasts, ROA will employ guerrilla tactics by increasing the advertising & marketing budgets by 5% each year for 5 years.
2008 2009 2010 2011 2012 2013Retail Sales Revenues 33,527,500$ 39,723,875$ 44,869,139$ 51,495,442$ 55,513,337$ 61,214,213$
Var Costs 17,626,413$ 20,884,033$ 23,589,052$ 27,072,699$ 29,185,027$ 32,182,148$ Gross Profit $15,901,087 $18,839,842 $21,280,087 $24,422,743 $26,328,310 $29,032,065
Marketing & Sales Expenses $692,499 $727,124 $763,480 $801,654 $841,737 $883,824Net Marketing Contribution $15,208,588 $18,112,718 $20,516,606 $23,621,089 $25,486,573 $28,148,241
Marketing ROI 4842% 5463% 5877% 6424% 6595% 6926%ROI Delta 171% 622% 414% 547% 171% 331%
ObjectivesRetail Revenues, Marketing Contribution & ROI
© 2007-2008 Richard E Murphy
Marketing Strategy
Strategy:– Improve retail division revenues by capturing greater share
of market for present line of products. – Inaugurate 2 new lines of business (pet memorials &
columbaria).Actions:
– Develop new Web site for retail division. – Aggressively pursue mausoleums, civic projects and
plaques for buildings. – Award advertising dollars based on a retail store’s market
potential.– Promote the wider use of columbariums. – Develop market for memorial stones and plaques in pet
cemeteries.
© 2007-2008 Richard E MurphyMarketing Plan supports Strategic Objectives of Balanced Scorecard to meet Financial Goals.
© 2007-2008 Richard E Murphy
Marketing Objectives - Balanced Score Card
Improve Market Share
Improve Retail Division Profits
Expand Lines of Business
Sensitive to Families
Appealing Designs
Highest Quality
Excellent Service and Brand Image
Develop Retail Division to be the growth engine for the entire company.
Improve Relationships & Alliances
Strategic JobsSales
Counselors
Strategic Systems
Retail Division
ROA’s Strategic Plan for Regaining Dominance
Financial Perspective Customer Perspective
Internal Perspective Learning Perspective
(Click on Title to Expand)
© 2007-2008 Richard E Murphy
Balanced Score Card
Improve Market Share
Improve Retail Division Profits
Expand Lines of Business
Financial Perspective
Objectives Measurement Target Initiative- Improve sales productivity- Increase market- Increase sales of large monuments & civic projects- Create new sources of revenue
- Amount sold in each retail store- Capture larger % of U.S market- Any increase in sales and additional civic projects.- Columbarium, Mausoleums, Pet memorials
- $400K- 25%- 1 per month- 20% increase in new business- 10% increase
- Incentives for sales personnel.- New “Go-to-market”strategy- Market community projects.- Internet Advertising, aggressive salespersons
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© 2007-2008 Richard E Murphy
Balanced Score Card
Sensitive to Families
Appealing Designs
Highest QualityExcellent Service and Brand Image
Customer Perspective
Objectives Measurement Target Initiative- Create market by name recognition- Create Partnerships- Become part of each community- Aggressively pursue civic projects-Expand customer base to pet owners and trend-setting generation
- Amount of ROA products vs other brand- Increase 3-P alliances- Join professional, social or volunteer organizations; Raise money for civic projects- Reach out to families with pets; individuals who prefer cremation or spreading of ashes
- 100%- At least 15% of all funeral homes- At least one member in each geographic location.- 20% increase the first year.
- Market ROA brands- Award Ad $ based on market potential- At the discretion of each ROA retail owner. At least one on-going civic project.Market to the core audience; personalize the ads to reach the specific group.
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© 2007-2008 Richard E Murphy
Balanced Score Card
Develop Retail Division to be the growth engine for
the entire company.
Internal Perspective
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Objectives Measurement Target Initiative- Acquire the proper retail locations- Create lifetime alliances- Manage the brand and educate the potential customers
- % of unprofitable retail stores- Repeat sales to family members- Customers that ask for ROA memorials by name.
- 0% in the red- 25% of families return.- 100%
- Divest of poor performing retail stores- Ensure satisfied customers on first sale.- Advertise in geographic specific publications.
© 2007-2008 Richard E Murphy
Balanced Score Card
Improve Relationships & Alliances
Strategic JobsSales
Counselors
Strategic Systems
Retail Division
Learning (Human Growth) Perspective
Objectives Measurement Target Initiative- Train Sales Personnel- Develop Support System (Accounting & Personnel)- Align all retailers with ROAC initiatives and culture- Improve relationships with Funeral Homes and customers
- Strategic Job Readiness for all sales personnel- Fully staffed retail stores & one integrated accounting systems- Meet ROAC metrics in every retail location- Cultural Awareness- Increase in number of 3-P members
- 100% of all sales personnel are trained- No vacancies- One accounting system- 15% EBIT at every store- 100% - 15 % of all funeral homes
-Develop in house training and mentoring program - -- Aggressive hiring and retention program - Communications and training plan.- Personal contact with each funeral director.
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© 2007-2008 Richard E Murphy
Action Plans
Target market – Pet owners– Action: Internet advertising. Adword.google.com for $.10 per
internet hit– Action: Market boarding kennels, veterinarians, groomers and Pet
stores. – Action: Establish new product line for pets
Target market – Families of loved ones who have been cremated– Action: Establish new product line - Columbaria
Target market – Civic Organizations– Action: Appeal to communities who have lost military members in
the war.– Action: Assist communities in fundraisers to build memorials
Target Markets
© 2007-2008 Richard E Murphy
Action Plan – 4 P’s
PlaceDirect or retailersInclusive Market Coverage Use existing company owned (110) and independent retailers (75)Use existing facilities for storageOrder on-line or at retail facilityTransport via ground trucking company, batch whenever possible
PromotionLocal Advertising and internetAdd prices to websiteOn-line sales rep and existing retail sales forceOffer discounts for internet sales (10%)Emphasis on military families
PricingPricing strategy: Reduce price ($2700) to pull business from competitorsSuggested retail price: $1000 - $1300 (industry average is $800)Offer volume discounts and wholesale pricing to independent retailers Offer cash and early payment discounts (15%)Price flexibility for military families
Product: Memorials
© 2007-2008 Richard E Murphy
Action Plan – 4 P’sProduct: Mausoleums
PlaceDirect or retailersInclusive Market Coverage Use existing company owned (110) and independent retailers (75)Use existing facilities for storage if practicalOrder on-line or at retail facilityTransport using ground trucking company partnership
PromotionLocal Advertising and internetOn-line sales rep and existing retail sales force Offer 10% discounts for internet sales & advertise pricesFocus on memorializing “Family”Emphasize “less expensive” than in-ground burials.
PricingPricing strategy: Research the current market and beat the averageSuggested retail price: $5000 for single/$11,000 for doubleOffer volume discounts and wholesale pricing to independent retailers Offer cash and early payment discounts (10%)Price flexibility for larger mausoleums for entire families, i.e. 6 to 8 people
© 2007-2008 Richard E Murphy
Action Plan – 4 P’sProduct: Civic Projects
PlaceDirect or retailInclusive Market Coverage Use existing company owned (110) and independent retailers (75)Use existing transportation hubsOrder through sales rep in person; face to face if large projectOrder on-line or at retail location for plaques and small projects
PromotionLocal Advertising and internetOn-line sales rep and existing retail sales force make personal visitsOffer to assist with fundraisersFocus on memorializing loved ones lost during the warAppeal to sense of patriotismAppeal to Community’s sense of purpose
PricingPricing strategy: Variable depending on size of projectSuggested retail price: $500 for basic plaques; up to $1M for a large community projectOffer to lead fundraiser and provide a percentage of the purchase price as a gift to the community. Offer early payment discounts (10%) for the community
© 2007-2008 Richard E Murphy
Action Plan – 4 P’sProduct: Columbaria
PlaceDirect or retailersInclusive Market Coverage Use existing company owned (110) and independent retailers (75)Use existing facilities for storage if practicalOrder on-line or at retail facilityTransport using ground trucking company partnership, batch if possible
PromotionLocal Advertising and internetOn-line sales rep and existing retail sales force Offer 10 - 15% discounts for internet sales & advertise pricesFocus on “Family” totem style Emphasize inexpensive option for cemeteries to purchase 288 cube design, and re-sale each cube space for profit
PricingPricing strategy: Research the current market and beat the averageSuggested retail price: Variable depending on size; Starting at $800 for Family Totem/$2500 for 288 cube styleOffer 15% discounts to cemeteries for 288 cube styleOffer volume discounts and wholesale pricing to independent retailers Offer cash and early payment discounts (10%)
© 2007-2008 Richard E Murphy
Action Plan – 4 P’sProduct: Pet Memorials & Monuments
PlaceDirect or Pet-centric retailersSelective Market Coverage Pet Stores, Vets, Animal RescuesUse existing facilities for storage and distributionOrder on-line or at selected retailersTransport via Fed-ex or ground trucking with other memorials
PromotionInternet & local Pet-centric locationsOn-line sales rep and retail sales force Offer 10% discounts for internet sales Focus on pets being part of the familyEmphasize new product line
PricingPricing strategy: PenetrationSuggested retail price: $75 - $400 for stones & Rock Urns/$200 - $450 for memorial gardensOffer wholesale pricing to independent pet-centric retailers
© 2007-2008 Richard E Murphy
Action Plan Timeline
Quarter 1– Develop separate website for Direct sales of all products– Begin Advertising for Pet line of products on Google (“coming soon”)– Determine pet product interest from number of “hits”– Complete market research for competitors pricing of memorials, mausoleums,
columbarium, pet headstones, etcQuarter 2
– Begin retail sales of the Pet line of products on internet only– Launch Website with competitive prices for all products (10-15% less than if
purchased at retail dealers)– Determine Civic opportunities and establish contact with local organizations
Quarter 3– Move pet product line to retail pet-centric locations– Begin local fund raising for at least one civic project– Monitor sales of all new product lines and report findings to ROA
Quarter 4– Conduct analysis on success of first three quarters.– Make adjustments as necessary
© 2007-2008 Richard E Murphy
Revenue Forecasts – 5 yrs
Year ROA Mkt Share Headstones Revenues Urns Revenues Memorials Revenues Total2008 1% 100 20,000$ 950 95,000$ 500 175,000$ 290,000$ 2009 5% 2925 585,000$ 5558 555,750$ 2925 1,023,750$ 2,164,500$ 2010 7% 6334 1,266,878$ 8597 859,667$ 4525 1,583,598$ 3,710,144$ 2011 10% 13328 2,665,662$ 12662 1,266,189$ 6664 2,332,454$ 6,264,306$ 2012 12% 18276 3,655,267$ 12648 1,264,846$ 6657 2,329,979$ 7,250,091$ 2013 15% 24964 4,992,811$ 18086 1,808,595$ 9519 3,331,623$ 10,133,030$
Pet Memorials - Sales Volume, Market Share and Revenues
$29,812,070
Based on Bass Diffusion Curve Analysis for predicting sales for new products, using the following parameters:
Headstones Urns Memorials
Saturation Sales 1000000 750000 500000
Innovation Coefficient 0.1 0.1 0.1
Imitation Coefficient 0.3 0.3 0.3
450%
500%
550%
600%
650%
700%
1 2 3 4 5 6Year
Growth of Market Share
C– Head Stones: $75 - $400– Rock or Bronze Urns: $75 - $150– Garden Memorials: $195 - $495
© 2007-2008 Richard E Murphy
Revenue Forecasts – 5 yrsColumbaria - Sales Volume, Market Share and Revenues
$26,731,435
Based on Bass Diffusion Curve Analysis for predicting sales for new products, using the following parameters:
450%
500%
550%
600%
650%
700%
1 2 3 4 5 6Year
Growth of Market Share
C– $1250 @ 30 niches per columbarium
Year ROA Mkt Share Columbarium Revenues2008 1% 350 437,500$ 2009 5% 2048 2,559,375$ 2010 7% 3167 3,958,995$ 2011 10% 4665 5,831,136$ 2012 12% 5331 6,663,246$ 2013 15% 5825 7,281,183$
Columbarium
Saturation Sales 350000
Innovation Coefficient 0.1
Imitation Coefficient 0.3
© 2007-2008 Richard E Murphy
Revenue Forecasts – 5 yrs
Year Monuments, Mausoleums, Civic Projects, Other Retail Revenues (X $1 Million) Growth2008 32.80 6.49%2009 35.00 6.71%2010 37.20 6.29%2011 39.40 5.91%2012 41.60 5.58%2013 43.80 5.29%
Present Retail Products – Revenues & Growth
$229,800,000
0.005.00
10.0015.0020.0025.0030.0035.0040.0045.0050.00
2008 2009 2010 2011 2012 20130.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
Revenues Growth
© 2007-2008 Richard E Murphy
Revenue Forecasts – 5 yrsAll Retail Products – Revenues & Growth
$286,343,506
Year Pet Memorials Columbaria All Other Retail Totals Growth2008 290,000$ 437,500$ 32,800,000 33,527,500$ 8.86%2009 2,164,500$ 2,559,375$ 35,000,000 39,723,875$ 18.48%2010 3,710,144$ 3,958,995$ 37,200,000 44,869,139$ 12.95%2011 6,264,306$ 5,831,136$ 39,400,000 51,495,442$ 14.77%2012 7,250,091$ 6,663,246$ 41,600,000 55,513,337$ 7.80%2013 10,133,030$ 7,281,183$ 43,800,000 61,214,213$ 10.27%
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
2008 2009 2010 2011 20120.00%
5.00%
10.00%
15.00%
20.00%
Totals Growth
© 2007-2008 Richard E Murphy
Historical Marketing Efficiency2006 Actual Advertising Budget vs Revenues & ROI
Total budget of $659,523
Local Advertising $ 467,200 Sales Materials (Price books) $ 143,437 Training (HR) $ 5,052 Market Research $ 430 ROAM Promotions $ 35,355 ROAM Local PR (Open House) $ 8,049
Retail Revenues $ 30,807,000 Gross Profit: $ 16,196,000 Marketing Costs $ 659,523NMC $ 15,536,477
ROI: 4671% (revenues:ad’ costs)
© 2007-2008 Richard E Murphy
Forecasted Marketing Efficiency
Average annual budget: $785,053
Average annual NMC:$21,848,969
2008 - 2013 Proposed Budget vs Net Marketing Contribution
Year Mkt Budget NMC
$15,208,588$18,112,718
$20,516,606
$23,621,089
$25,486,573$28,148,241
2008 $ 692,4992009 $ 727,124
2010 $ 763,480
2011 $ 801,654
2012 $ 841,737 2013 $ 883,824
© 2007-2008 Richard E Murphy
Controls
Metrics will be gathered and displayed in several sets of dashboards, in order that management can determine “at a glance” exceptions to anticipated performance.Dashboards will be created to monitor performance in the areas of:
– Balanced Scorecard goals– Marketing– Sales
Dashboards will have “drill down”capability, in order that managers can access detailed metrics.Dashboards will contain visual and e-mail “alerts” to warn appropriate individuals when a metric is outside established parameters.
Dashboards
5 Keys to Building Effective Dashboards
Build cross-functional alignment on role of marketing in ROA. Map knowledge base to identify critical metrics.Provide financial (versus purely strategic) framework for bridging short-and long-term results from marketing investments. Build comprehensive brand scorecard.Design highly engaging user interface.
Examples follow:
© 2007-2008 Richard E Murphy
Controls – Balanced ScorecardBalanced Scorecard Goal Accomplishment
© 2007-2008 Richard E Murphy
Controls - Marketing
• Metrics & Analytics that may be included in marketing dashboards:
– Revenues versus expenditures– Marketing Budgets versus Costs – Promotional campaign effectiveness– Web page traffic metrics for Search Engine Optimization (SEO) to evaluate site
visitor motivations. – Web trends and click-stream analysis – Competitive analysis– Industry trend summaries.– Customer Analysis – Market share trends
Dashboards will display marketing performance
© 2007-2008 Richard E Murphy
Controls - MarketingMarketing Expenses:Revenues - 2008
© 2007-2008 Richard E Murphy
Controls - MarketingMarketing Channel Budgets vs Costs
© 2007-2008 Richard E Murphy
Controls - MarketingMarketing Effectiveness - Campaign costs vs. revenue increase
© 2007-2008 Richard E Murphy
Controls - MarketingMarketing Effectiveness – Internet Summary
© 2007-2008 Richard E Murphy
ControlsMarketing Effectiveness – Website
© 2007-2008 Richard E Murphy
ControlsMarketing Effectiveness – Competitive Analysis
Rock of AgesCompetitor 1Competitor 2
© 2007-2008 Richard E Murphy
ControlsMarketing Effectiveness – Industry Trends
90.00%100.00%
110.00%120.00%130.00%
140.00%150.00%160.00%170.00%
180.00%190.00%
Baseline - 2007 2008 2009 2010 2011 2012
Cemetery BurialCremationPet ServicesCivic Projects
© 2007-2008 Richard E Murphy
ControlsMarketing Effectiveness – Customer Analysis
© 2007-2008 Richard E Murphy
ControlsMarketing Effectiveness – Market Share Trends (%)
2007 2008
2009 2010
© 2007-2008 Richard E Murphy
Controls - Sales
Analytics that may be covered within a sales dashboard:
– Actual versus forecast (% of goal)– Sales quota versus actual – Regional and territorial sales by product – Channel sales – Order fulfillment: Incoming orders, shipping status, and backlog
Dashboard will display all relevant sales metrics
© 2007-2008 Richard E Murphy
Controls - SalesProduct Sales – percent of goal
© 2007-2008 Richard E Murphy
Controls - SalesMonthly Sales Report
© 2007-2008 Richard E Murphy
Controls - SalesRegional Retailer Report
© 2007-2008 Richard E Murphy
Controls - SalesRegional Sales Counselors
© 2007-2008 Richard E Murphy
Controls - SalesChannel Sales
© 2007-2008 Richard E Murphy
Controls - SalesOrder Fulfillment & On Time Deliveries
YTD MTD KPI Actual Target Variance■ ▲ Order
Fulfillment70% 75% -5%
■ ▼ On Time Delivery
90.5% 90% .5%
© 2007-2008 Richard E Murphy
Contingency Plans
When creating the dashboard controls, ROA will develop and implement alerts and escalation procedures for out-of-parameter data events. The procedures will define what actions are to be taken, when and by whom in order to manage the exceptions. Anomalies couldinclude such things as being +- 5% of revenue goals, falling behind target market share, being over budget or outside ROI parameters for advertising campaigns.
ROA will appoint a committee to aggressively solicit and investigate ideas for expanding sales of their current products, both geographically and to new market segments. Similarly, the efficacy of inaugurating new lines of business - such as the pet memorials and columbaria suggested in this presentation – will be researched and a written report containing recommendations for pursuing new opportunities will be submitted to senior management monthly.
Action to be taken if threats or opportunities materialize
© 2007-2008 Richard E Murphy
Summary
In the event that ROA maintains status quo with regard to the marketing activities of its current retail products, it will likely experience modest revenue increases, due almost entirely to increased deaths as the population ages. However, costs will rise equally with revenues, thus shareholder value would remain stagnant.Enhancing shareholder value will require that ROA’s management inaugurate new lines of business (i.e., pet memorials & columbaria); and forge new affiliations (e.g., with crematoriums, the military and civic organizations), as well as updating their technologies (Internet + dashboards), for marketing and managing their traditional products.The new products, alliances, financial projections and management controls recommended for implementation in this presentation will enhance the internal, human, customer and financial perspectives of ROA’s Balanced Scorecard, thereby supporting the company’s strategic objectives in the Retail Division, and providing ROA’s officers, employees and stockholders with greater security and prosperity during the coming years.
© 2007-2008 Richard E Murphy
References
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